New Departmental Contracting Limits

Procurement Bulletin 2019-3
Category: Contract
May 17, 2019

As you may know, Treasury Board (TB) limits departmental contracting authority in its Contracting Policy. In the context of its policy reset initiative, TB has increased departmental contracting limits.

New departmental contracting limits will be:

  1. For competitive contracts $3.75M
  2. For non-competitive contracts $200K.

In approving these limits, TB also changed how departments must manage limits. Departments no longer have separate limits for contract entry and contract amendments. The above amounts include all options, amendments, taxes and costs.

For non-competitive contracts, clients will still be required to provide CFOB with a sole source justification consistent with section 6 of the Government Contracts Regulations.

Treasury Board also approved other policy changes such as the process for contracts with former public servants and accessibility provisions. Departments have a transition period of six months to implement these changes. CFOB will be reviewing its policies and procedures and will advise you of any changes to the procurement process in a future bulletin.

Any procurement above these amounts must be sent to PSPC or SSC to be completed. While we expect that the new departmental limits will increase the CFOB Procurement Operations workload, as we will now be responsible for more contracts internally, we do not anticipate the increase to be significant and we will work to continue to meet our established service standards.

Questions and comments of a general nature related to the contents of this bulletin can be sent to the Asset Management Policy and Procurement (AMPP) team by email at NC-PURCHASING_PORTAL-PORTAIL_D'ACHATS-GD.

Distribution:

  1. Directors General
  2. Procurement Business Reference Network
  3. Requisitioners